The Risk-Free Rate Is 3

question 10

Multiple Choice

The risk-free rate is 3.4 percent and the expected return on the market is 10.8 percent.Stock A has a beta of 1.18.For a given year,stock A returned 13.6 percent while the market returned 11.8 percent.The systematic portion of the unexpected return was ________ percent and the unsystematic portion was ________ percent.

• A) 1.045; 0.207
• B) 1.145; 0.126
• C) 1.180; 0.288
• D) 1.344; 1.443
• E) 1.500; 1.449

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Definitions:

Analytical Psychology

Analytical psychology is a branch of psychology established by Carl Jung, focusing on the integration of conscious and unconscious aspects of the psyche.

Behavioural View

A perspective in psychology that focuses on observable behaviors and the ways in which learning occurs through interactions with the environment.

Learning Experiences

Learning Experiences are any activities, tasks, or events that provoke a change or development in an individual's knowledge, skills, attitudes, or behaviors.

Reinforcement

A process in behavioral psychology that increases the likelihood of a behavior being repeated, either by introducing a positive stimulus or removing a negative one.